Sections

Celebrating employer excellence in the video games industry

8th July 2021

Submit your company

Red 5 confirms lay-offs

EA claims business is "bankrupt"; report suggest The9 is new investor

Red 5 Studios has confirmed that is going through a reorganisation process that has resulted in lay-offs and voluntary departures.

Yesterday it was reported that around 30 members of staff were axed, but the company has so far refused to detail specific numbers.

"Red 5 remains committed to releasing a AAA quality, online title targeted for a worldwide release. The company has restructured the team in order to accomplish this goal. As part of the restructuring, some team members chose to part ways while others were let go. Red 5 has great respect for these departing team members and the contributions they have made," said the company.

It also confirmed that it has received new financial backing, with a report by Kotaku claiming the investment is from Chinese firm The9.

"Red 5 Studios is currently working on an unannounced massively multiplayer online game. Recently, the team formed around a new direction and took on additional investment from a strategic partner in the online games industry," said Red 5 in a statement.

In a twist to the tale, EA's Jeff Brown claimed the company is "bankrupt", taking the opportunity to further embarrass Benchmark Capital's Mitch Lasky – which invested $18.5 million in Red 5 in 2006 – after the former exec claimed the Madden publisher was in the wrong business.

"Now that Red 5 Studios is bankrupt, Mitch Lasky can devote more time to giving business advice on his blog," he told Gamasutra.

Celebrating employer excellence in the video games industry

8th July 2021

Submit your company

More stories

Red 5 shutting down Firefall MMO in favour of mobile version

Ex-WoW developers suspending work on sci-fi title just three years after release

By James Batchelor

Red5 grabs $23m in funding for Firefall

Series B cash "will offer means to execute plan for successfully launching Firefall"

By Rachel Weber

Latest comments (1)

Private VIdeo Games 11 years ago
Lol that quote from Jeff Brown is awesome..

A true *Owned* moment...
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.